Wednesday, April 6, 2011

Fish in a Barrel

This whole budget thing is a thing of beauty.

Nothing could more clearly show what is wrong with politics, the news and the mis-perceptions of the American public.

Let's start with the current impasse.  The GOP wanted $61 billion in additional cuts and the Democrats agreed to $33 billion. They met them half way.  Now, this is really not a good way to tell if this is a fair compromise or not but its all I've got.

The GOP, equipped with a TEA PARTY bark collar is now trying, not to get that last $28 billion, but tying to adjust the social programs certain moneys pay for.  They don't care about the savings.  They are more interested in anti-abortion politics (to appease those that seem to know what God wants) and to eliminate NPR so that their other master, Rupert Murdock, will not have any radio competition for Rush and Hannity.

I saw a Tea Party leader on television a few minutes ago.  Here is their party line:  "We can't keep spending more than we take in."  This is a great line because 100% of us agree with it.  She went on to say a government shutdown will be "No big deal."  Apparently, she is not one of the 800,000 people that will lose their job when the shutdown occurs.  By the way, costs for preparations for a shutdown are quickly approaching the amount the two parties are squabbling over.  Another Tea Party member, when asked how a tax cut for the rich will help balance the budget, she said, "It's a fact that when business owners have more money, they reinvest in their company and create jobs."

Then there was the GOP guy that said eliminating Medicare will promote competition.  He also said that those near retirement will not be affected.  Others, they young, will have time to prepare for having to pay for health care until they die.

These are such easy targets (thus my "fish in a barrel" title).

Let's address them, starting with Medicare.

I'm  53; just a  year and a half too young to fall into the pool of "unaffected".  So, I have about 12 years to find a way to come up with $2,000 a month to pay for medical insurance for the rest of my life.  I got the $2,000 a month figure from what it costs us now to ensure an employee in his 60's.

Furthermore, Medicare, unlike many government programs, is actually very efficient.  I'm not sure how passing this off to the most expensive health care system in the world (our private sector) will actually lower costs.  The GOP seems to think the health care providers will say,"look at all of this money coming in.  Let's pass some of these savings along to the people."  I'm thinking not.


As far as "trickle down" economics are concerned:  This is where you give rich people money in the hope that they will create jobs.

How about an example:

 Let's suppose that I am a business owner and my company makes book shelves. The economy took a nosedive and people quit buying bookshelves.  I kept my people employed as long as I could.  In fact, my warehouse is full.  Finally, I laid people off.

The GOP believes that if I get a tax cut, I will hire my people back and begin making bookshelves once again.

That is not what I would do.  I won't start making more bookshelves until people start buying bookshelves again.  Demand precedes supply.

Why do you think no one sells space heaters in the Mojave desert?  Because there is no demand.  The GOP would have you think that by starting a space heater business in the middle of the desert, people will drop by and say, "Hey, I may not have any money, but I have to get me some of that."  This will in turn create jobs for space heater makers and the economy will thrive.

Ridiculous!

I can't make it any more simple than that.  You need to get customers first.  This means that you have to put money in the hands of the buyers, not the makers.

No one can believe that its the other way around; which makes the GOP's position even worse.  They are lying right at you in hopes that Glenn Beck can convince you to believe them.

Why, you may ask, if this is so clear and easy to understand, why aren't the Democrats saying something like this.  First of all, they are.  Secondly, they are wimps.

If the Republican party would just respond to every accusation with "Democrats are Wimps," I would nod knowingly.  "You have a good point," I would say.

However, just because they are wimps, doesn't mean they are wrong.  The fact that they are wimps just means they won't fight in the streets like the GOP.

You can help them get their message out by forwarding this blog link to someone that watches Fox news.  They will have to believe what I am saying; after all, I'm a hero and that's how we heroes roll.

By the way, there is a much more complicated issue here that deals with taxes, debt ratios and interest rates.  These are things that impact capital investment, not tax cuts for the owners.

So, we are spending more than we are taking in.

Take in more money.  Why eliminate Medicare while cutting taxes for the rich.  Don't lower the upper tax bracket - double it.  There have been times when I'm in that higher range and I still say "raise it."

I say this because I'm a hero and there is saving to be done.

Up, up and away...

j

And now, a moment from "Keeping them honest."


3 comments:

  1. As you said yourself, economics is not your strong point

    ReplyDelete
  2. Anonymous,

    I would love to post your counter-argument here.

    ReplyDelete
  3. http://www.nationalreview.com/corner/264266/thank-you-jay-newton-small-kathryn-jean-lopez

    ReplyDelete